Bitfinex’s bigger problems

Despite these large price movements, Bitfinex is fighting a much larger legal battle from the New York Attorney General’s office. The exchange is fighting back against accusations of an $850m cover-up by the company, which Bitfinex says are “riddled with false assertions.”

The NY Attorney General is accusing Bitfinex of losing $850m of customer funds, and that it used the platform’s own stablecoin, Tether, to hide the companies’ tracks. Bitfinex would later claim that its funds were “seized and safeguarded” and that it was working proactively to get the alleged funds released back to customers.

The company would also go on to assure traders that its platform and Tether had the required liquidity, stating:

Both Bitfinex and Tether are financially strong – full stop. And both Bitfinex and Tether are committed to fighting this gross overreach by the New York Attorney General’s office against companies that are good corporate citizens and strong supporters of law enforcement. Bitfinex and Tether will vigorously challenge this, and any and all other actions, by the New York Attorney General’s office.